Contributions to HSAs by individuals are tax deductible, even if the taxpayer does not itemize. Contributions by an employer are not included in the individual’s taxable income. Individuals, their employers, or both can contribute tax-deductible funds each year up to the amount of the policy’s annual deductible, subject to a cap of $3,350 for individuals and $6,750 for families in 2016. In 2017 and later, the cap is $3,400 for individuals and $6,750 for families, subject to cost-of-living adjustments. In addition, individuals over age 55 can make extra contributions to their accounts of up to $1,000 and still enjoy the same tax advantages.